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8/12/2019 San Pablo v Pantranco (TRANSPO)
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Epitacio San Pablo v. Pantranco
[G.R. No. L-61461 & 61501. August 21, 1987.]
EPITACIO SAN PABLO (substituted by Heirs of E. San Pablo), petitioners, vs. PANTRANCO
SOUTH EXPRESS, INC., respondent .
CARDINAL SHIPPING CORPORATION, petitioner , vs. HONORABLE BOARD OF
TRANSPORTATION and PANTRANCO SOUTH EXPRESS, INC.,respondents.
Preliminary Info:
Problem : A CC wants to extend their certificates for public convenience beyond its operation bounds
Carrier : Pantranco
Respondents : BOT , an admin agency
Doctrine : While a ferry boat service has been considered as a continuation of the highway whencrossing rivers or even lakes, which are small body of waters - separating the land, however, when as in
this case the two terminals, Matnog and Allen are separated by an open sea it cannot be considered as a
continuation of the highway. Therefore to operate a route on it, the carrier must obtain a separate CPC.
ER
PANTRANCO is a domestic corporation engaged in the land transportation business. It has certificates
for public conveniences (CPC) to operate passenger buses from Metro Manila to Bicol Region and
Eastern Samar.
PANTRANCO through its counsel wrote to Maritime Industry Authority (MARINA) requesting authority to
lease/purchase a vessel named MN "Black Double" to be used for its project to operate a ferryboat
service from Matnog, Sorsogon and Allen, Samar that will provide service to company buses and freight
trucks that have to cross San Bernardo Strait.
MARINA said that it cannot give due course to the request, because there was already an inter-island
shipping company operating their desired route.
MARINA policies on interisland shipping restrict the entry of new operators which are…
adequately serviced by existing/authorized operators. Market conditions in the proposed route cannot support the entry of additional tonnage
PANTRANCO nevertheless acquired the vessel MN "Black Double" .
It wrote the Chairman of the Board of Transportation (BOT) through its counsel,
that it proposes to operate a ferry service to carry its passenger buses and freight trucks
between Allen and Matnog in connection with its trips to Tacloban City.
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Without awaiting action on its request PANTRANCO started to operate said ferry service.
It believes that for the purpose of continuing the highway, which is interrupted by a small body
of water, the said proposed ferry operation is merely a necessary and incidental service to its
main service and obligation of transporting its passengers.
ISSUE:
Should PANTRANCO have first gotten a separate CPC before operating that boat? YES
HELD:
Considering the distance between MATNOG and ALLEN (20km), the conveyance of passengers, trucks
and cargo from Matnog to Allen is certainly not a ferry boat service but a coastwise or interisland
shipping service.
Under no circumstance can the sea between Matnog and Allen be considered a continuation of the
highway. While a ferry boat service has been considered as a continuation of the highway when crossing
rivers or even lakes, which are small body of waters - separating the land, however, when as in this case
the two terminals, Matnog and Allen are separated by an open sea it cannot be considered as a
continuation of the highway.
Respondent PANTRANCO should secure a separate CPC for the operation of an interisland or coastwise
shipping service in accordance with the provisions of law. Its CPC as a bus transportation cannot be
merely amended to include this water service under the guise that it is a mere private ferry service
Thus the Court holds that the water transport service between Matnog and Allen is not a ferry boat
service but a coastwise or interisland shipping service. Before private respondent may be issued a
franchise or CPC for the operation of the said service as a common carrier, it must comply with the usualrequirements of filing an application, payment of the fees, publication, adducing evidence at a hearing
and affording the oppositors the opportunity to be heard, among others, as provided by law.
PANTRANCO lost.
LONG DIGEST
FACTS:
The Pantranco South Express, Inc., hereinafter referred to as PANTRANCO is a domestic corporation
engaged in the land transportation business with PUB service for passengers and freight and various
certificates for public conveniences (CPC) to operate passenger buses from Metro Manila to Bicol Region
and Eastern Samar.
On March 27,1980 PANTRANCO through its counsel wrote to Maritime Industry Authority (MARINA)
requesting authority to lease/purchase a vessel named MN "Black Double"
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"to be used for its project to operate a ferryboat service from Matnog, Sorsogon and Allen,
Samar that will provide service to company buses and freight trucks that have to cross San
Bernardo Strait.
In a reply of April 29,1981 PANTRANCO was informed by MARINA that it cannot give due course to the
request, based on the following observations.
1.) The Matnog-Allen run is adequately serviced by Cardinal Shipping Corp. and Epitacio San
Pablo; MARINA policies on interisland shipping restrict the entry of new operators to
Liner trade routes where these are adequately serviced by existing/authorized
operators.
2.) Market conditions in the proposed route cannot support the entry of additional tonnage; vessel
acquisitions intended for operations therein are necessarily limited to those intended for
replacement purposes only."
PANTRANCO nevertheless acquired the vessel MN "Black Double" on May 27, 1981 for P3 Million pesos.
It wrote the Chairman of the Board of Transportation (BOT) through its counsel,
that it proposes to operate a ferry service to carry its passenger buses and freight trucks
between Allen and Matnog in connection with its trips to Tacloban City.
(Important wrong argument)
PANTRANCO claims that it can operate a ferry service in connection with its franchise for bus
operation in the highway from Pasay City to Tacloban City "for the purpose of continuing the
highway, which is interrupted by a small body of water, the said proposed ferry operation is
merely a necessary and incidental service to its main service and obligation of transporting its
passengers from Pasay City to Tacloban City.
Such being the case there is no need to obtain a separate certificate for public convenience to
operate a ferry service between Allen and Matnog to cater exclusively to its passenger busesand freight trucks.
Without awaiting action on its request PANTRANCO started to operate said ferry service.
Acting Chairman Jose C. Campos, Jr. of BOT ordered PANTRANCO not to operate its vessel until
the application for hearing on Oct. 1, 1981.
In another order BOT enjoined PANTRANCO from operating the MN "Black Double" otherwise it
will be cited to show cause why its CPC should not be suspended or the pending application
denied.
Epitacio San Pablo (now represented by his heirs) and Cardinal Shipping Corporation who are franchise
holders of the ferry service in this area interposed their opposition. They claim they adequately servicethe PANTRANCO by ferrying its buses, trucks and passengers.
BOT then asked the legal opinion from the Minister of Justice whether or not a bus company with an
existing CPC between Pasay City and Tacloban City may still be required to secure another certificate in
order to operate a ferry service between two terminals of a small body of water.
On October 20, 1981 then Minister of Justice Ricardo Puno rendered an opinion to the effect
that there is no need for bus operators to secure a separate CPC to operate a ferryboat service.
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Thus on October 23, 1981 the BOT rendered its decision holding that the ferryboat service is
part of its CPC to operate from Pasay to Samar/Leyte by amending PANTRANCO's CPC so as to
reflect the same.
Cardinal Shipping Corporation and the heirs of San Pablo filed separate motions for reconsideration of
said decision and San Pablo filed a supplemental motion for reconsideration that were denied by the
BOT on July 21, 1981.
Hence, San Pablo filed the herein petition for review on certiorari with prayer for preliminary
injunction seeking the revocation of said decision, and pending consideration of the petition the
issuance of a restraining order or preliminary injunction against the operation by PANTRANCO of
said ferry service
ISSUES:
1.) Whether the sea can be considered as a continuation of the highway?
2.) Is PANTRANCO a private carrier?3.) Whether a land transportation company can be authorized to operate a ferry service or
coastwise or interisland shipping service along its authorized route as an incident to its franchise
without the need of filing a separate application for the same.
Held:
Open sea, not a continuation of highway.
Under no circumstance can the sea between Matnog and Allen be considered a continuation of the
highway. While a ferryboat service has been considered as a continuation of the highway when crossing
rivers or even lakes, which are small body of waters separating the land, however, when as in this casethe two terminals, Matnog and Allen are separated by an open sea it can not be considered as a
continuation of the highway.
The contention of private respondent PANTRANCO that its ferry service operation is as a private carrier,
not as a common carrier for its exclusive use in the ferrying of its passenger buses and cargo trucks is
absurd. PANTRANCO does not deny that it charges its passengers separately from the charges for the
bus trips and issues separate tickets whenever they board the MN "Black Double" that crosses Matnog
to Allen. Nevertheless, considering that the authority granted to PANTRANCO is to operate a private
ferry, it can still assert that it cannot be held to account as a common carrier towards its passengers and
cargo. Such an anomalous situation that will jeopardize the safety and interests of its passengers and
the cargo owners cannot be allowed.
Ferry service distinguished from interisland service.
Thus the Court holds that the water transport service between Matnog and Allen is not a ferryboat
service but a coastwise or interisland shipping service.
In Javellana case (98 Phil. 964) We made clear distinction between a ferry service and coastwise or
interisland service by holding that:" . . . We are inclined to believe that the Legislature intended ferry to
mean the service either by barges or rafts, even by motor or steam vessels, between the banks of a river
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or stream to continue the highway which is interrupted by the body of water, or in some cases, to
connect two points on opposite shores of an arm of the sea such as bay or lake which does not involve
too great a distance or too long a time to navigate. But where the line or service involves crossing the
open sea like the body of water between the province of Batangas and the island of Mindoro which the
oppositors describe thus "the intervening waters between Calapan and Batangas are wide and
dangerous with big waves where small boat, barge or raft are not adapted to the service,' then it is more
reasonable to regard said line or service as more properly belonging to interisland or coastwise trade." .
. .
Separate certificate of public convenience must be secured
Respondent PANTRANCO should secure a separate CPC for the operation of an interisland or coastwise
shipping service in accordance with the provisions of law. Its CPC as a bus transportation cannot be
merely amended to include this water service under the guise that it is a mere private ferry service. Thus
the Court holds that the water transport service between Matnog and Allen is not a ferryboat service
but a coastwise or interisland shipping service.
Before private respondent may be issued a franchise or CPC for the operation of the said service as a
common carrier, it must comply with the usual requirements of filing an application, payment of thefees, publication, adducing evidence at a hearing and affording the oppositors the opportunity to be
heard, among others, as provided by law.
WHEREFORE, the petitions are hereby GRANTED and the Decision of the respondent Board of
Transportation (BOT) of October 23, 1981 in BOT Case No. 81-348-C and its Order of July 21, 1982 in the
same case denying the motions for reconsideration filed by petitioners are hereby Reversed and set
aside and declared null and void. Respondent PANTRANCO is hereby permanently enjoined from
operating the ferryboat service and/or coastwise/interisland services between Matnog and Allen until it
shall have secured the appropriate Certificate of Public Convenience (CPC) in accordance with the
requirements of the law, with costs against respondent PANTRANCO.